KBA CEO CHAT - Enhancing Financial Services Access Through Digital Platforms

CEO | Martin Mugambi, Citibank, CEO
MONTH | May 2020
Chat Admin
Good morning everyone, welcome to yet another edition of the My Chat with a Bank CEO
Chat Admin
Today's topic is Enhancing Financial Services Access Through Digital Platforms and our host is Mr. Martin Mugambi, Citibank, CEO
Winnie Ongori
Thank you,we look forward to an insightful session
David Indeje
Good morning Admin. Glad to be onboard
Chat Admin
We look forward to a very engaging session with you all
Chat Admin
Thanks Winnie and David
Calvince Amallah
Good morning Admin, Looking forward to a great session.
Chat Admin
Good morning Calvince. Thank you and karibu to the chat
Chat Admin
I see afew people have logged in and joined the session. Yvonne, Jeremy, David, Maureen, Joseph, Hesborn and Paul; good morning!
Wandiri Gitogo
Hello everyone, looking forward to learning about digital platforms
nuru mugambi
Hi good morning
nuru mugambi
Good to be here looking forward to the discussion
David Indeje
Q1. It is impressive that banks are embracing digital platform to serve their customers. How secure are they? especially mobile and internet banking?
Chat Admin
Hello Wandiri, hello Nuru glad you could join the chat. Looking forward to an engaging session with you
Fredrick Juma
My first time to land here after unsuccessful previous registrations.
David Indeje
@Juma he he
Chat Admin
Hi Fredrick Juma, karibu and thank you for joining us!
Chat Admin
As we wait for the official start at 10am, you're welcome to begin posting your questions and thoughts on the topic of the day i.e. Enhancing Financial Services Access Through Digital Platforms
Jacob Kumenda
Jacob Kumenda from Consumer Grassroots Association, eagerly awaiting today's chat.
Yvonne Wanjiru
God mormning.My greatest concern has always been the safety of itransactiong through digitla platforms.How much has been done to ensure protection of customer digital transactions from unwanted actions by unauthorized users?
maina NJUGUNA
Looking forward to this chat.
Fredrick Juma
When we talk about digital banking platforms, what are we really talking about beyond an app?
maina NJUGUNA
We need a description of what "Digital Platforms" encompasses.... app? USSD? website? agency banking?
Chat Admin
As we progress with the session, you may like messages that you find insightful and you're also welcome to tweet them by clicking on the tweet icon. As you tweet please use the hashtag #CEOchat so that messages from this session can be found on one thread
Stephanie Wuu
hi
Stephanie Wuu
Good morning Mr. Martin
Stephanie Wuu
Are you here yet Mr. Martin?
Limo Taboi
A question from Uganda: How are banks are leveraging tech to create *additional value* for consumers, beyond using it to improve efficiency of their systems and reach more people?
David Indeje
Q2: The issue of simplicity and transparency of the fees charged for sending, is it possible for the banks to indicate how much it cost before the transaction? Currently, non
Steve Murithi
Good Morning
Stephanie Wuu
Is Mr. Martin here yet
Stephanie Wuu
Hi Steve, I am new here so are you here before? How did it work?
Chat Admin
Our host is here and ready to take us through the session, please welcome Mr. Martin Mugambi Citibank, CEO
David Indeje
Q3: Which platforms are consumers embracing more since March to date: Cards, Internet banking, Mobile or USSD as a percentage?
Martin Mugambi
Good morning everyone welcome to the Chat, I hope everyone is keeping safe.
Steve Murithi
Hi Stephanie, first time too, not sure how.....
David Indeje
karibu sana Bw. Martin, I am ok.
Stephanie Wuu
Hi Mr. Martin, it is great to finally met you as I am very impressive about your banking background overall.
Fredrick Juma
Karibu sana Mr. Martin.
Betty Kimathi
Good Morning
Yvonne Wanjiru
Good morning Mr.Mugambi .Looking forward to an interactive session
Steve Murithi
Karibu Martin
Martin Mugambi
Welcome Steve, Stephanie, Clavince, Yvonne and the many others who have joined this CEO chat, I look forward to an engaging chat.
Joseph Gikuni
morning sir, keeping safe here
Calvince Amallah
Welcome Mr Martin
Martin Mugambi
Karibu Joseph, lets chat and get some good ideas from the discussion.
Stephanie Wuu
Hi Mr. Martin, first of all, I am also a radio show host here in as our radio station is in Charlotte NC USA. I hope I can make some connection here today
Stephanie Wuu
building a bridge with USA to Africa in the future as well.
David Gitonga
Morning sir.
Moses Kefa
Good morning
David Indeje
Q4: How are banks through their digital platforms increasing engagement especially including services such as linking P2P payments to one of the many available services?
Martin Mugambi
The COVID 19 pandemic has changed how we live, work and relate to each other. And this includes how we bank. I hope I can help the conversation in how banks are supporting you through this time.
Moses Kefa
How secure really are our online transactions using the APIs?
Collins Kim
Morning Martin, with EU and UK having PSD2 and Open Banking services to enhance the banking services, what is needed by Kenyan Banks or regulations to have that here?
Calvince Amallah
Question: To begin with, Mr Martin, kindly let me understand what digital platforms, specifically in banking, are?
Jacob Kumenda
Digital platforms offering credit aren't regulated in Kenya and this as encouraged so many Shylocks coming up with such platforms & in turn they have exploited consumers. What are banks to have regulations in place in this regard?
Stephanie Wuu
Mr. Martin that is good question, how does your bank do for your customers now as USA most banks here offering relief program ..I assume that yours too?
Martin Mugambi
Im happy to take questions from you on this topic and exchange good ideas on how technology can improve the services we offer you.
Theresa Okeyo
Morning sir. My question is how can we have a deeper reach for banking digital services particularly in africa where concerns remain on security and privacy if digital transactions
Fredrick Juma
What is digital banking beyond the app?
Martin Mugambi
I see Mainas question on defining digital platforms and this is a good place to start.
Oscar Magu
[On Digital Banking] Good morning Martin, What are some of the lessons you are learning in the times of COVID 19 ?
Martin Mugambi
Digital platforms are not just about Apps and Mobile, it covers everything relating to how you virtually interact with banking partners and other ecosystems.
Martin Mugambi
In our region, mobile banking is what comes to mind; but we should also consider other platforms that use API, smart digital tools, including AI and data-led tools, that remove friction in banking.
David Gitonga
Curious to know how Kenyan banks are adapting to the growing interest and need for digital currencies including stablecoins at this time
Stephanie Wuu
Mr. Martin have you bank knowling what pecentage of your customers using online or mobile banking?
Yvonne Wanjiru
Traditional banking will die a natural death in the near future..Accesibility of digital financial services to customers will become a necessity and not a preserve of a few customers.
Martin Mugambi
For instance, retail customer support is not limited to just call centers -- we have the ability to solve serve your needs through intelligent digital platforms that use data and automated solutions. I would say automated or self-service banking is the new normal of retail service models.
David Indeje
Q5: A look at Citibank, how is the lender using fintech and big data, if so to understanding digital solutions better to serve its customers or to make decisions?
Stephanie Wuu
I believe there are still people believe in traditonal banking as it is still useful in USA especailly for small business owners here.
Martin Mugambi
Thank you David for your question, security is front and center for all customers when transacting and banks are placing significant efforts on cyber security to ensure resilience of these platforms. The platforms are safe and fit for purpose; we have to continue being diligent as cyber threats continue to evolve all the time.
Martin Mugambi
Yvonne, thank you for your question, I understand where you are coming from.
Stephanie Wuu
Mr. Martin as COVID-19 each nations now are safeguard their cyber security so how does your bank make effort to prevent it?
mary sabwa
With Enhancing Financial Access through Digital Platforms, come the scary discussion on AML etc. As Banks what have we been doing to enable financial access BUT ensure we are not supporting illegal transfer of funds across the world
Martin Mugambi
A good example of security measures involve two step log in processes to authenticate and validate access. Unauthorized use is always a threat but a lot of security has been enhanced in the use of digital platforms. I would say that it is also for consumers to be vigilant in not sharing their PINs or passwords with others; and taking precautions with their mobile devices and financial information. The KBA Kaa Chonjo campaign which we are running this month gives you all the details of how to safeguard and protect yourself while banking digitally.
Eric Asuma
Hi Martin, in your view, what will Banking look like after the pandemic? From a consumer's point of view
Martin Mugambi
Limo, thank you for your question, Sebo!
Johnson Oreche
Hello mr Martin mugambi. Am sorry for going outside the topic , however, am kindly requesting for an internship opportunity with you in order to gain the relevant work experience. I am in 4th year final semester taking bachelor of commerce accounting option at multimedia university of Kenya. Thanks in advance.
Roselyne Njino
Good morning Mr. Mugambi, with rapid digitization in Africa and Kenya slowly transitioning into digital economy amid COVID-19 pandemic, how are banks supporting clients who are laggards in nature in terms of adopting new technology?
Stephanie Wuu
Hi Mr.Martin, as early Mary metnioned about verify the funding, can you walk me through how does your bank process and what steps you take to verify and how long will it take?
Stephanie Wuu
That is the reason I am here today to talk with you! Professionally and personally! Thanks.
Martin Mugambi
Smart partnerships with fintechs and mobile players help banks create value by using data to drive solutions for you. For example, if you want to buy health insurance, we have the ability to leverage personal data and provide micro insurance solutions as a mobile user if you request it. Value added solutions come from leveraging smart partnerships.
Winnie Ongori
Hello Mr.Mugambi,Thank you for hosting us in such an insightful discussion
Winnie Ongori
With this tough times ,how are you handling your customer experience and engagement as a financial institution?
Calvince Amallah
Martin, from a general perspective, digital platforms may make it easier for money laundering, Terrorism financing, etc. What are Kenyan banks, or particularly your bank, carrying out to successfully implement AML and Anti-Terrorism Financing policies?
Martin Mugambi
Moses Kefa, APIs or application program interfaces, are the next smart way in which banks will interface with their corporate customers beyond host to host applications. APIs are resilient and safe because you expose them to partners in a managed ecosystem. For instance some bank APIs connect to SWIFT, ERPs and other corporate files to exchange data in a secure environment.
Martin Mugambi
Calvince I see your follow up on AML and CFT
Arnold Ochieng'
What are the digital financial inclusion strategies developed by your bank to achieve maximum reach out?
Martin Mugambi
This is a great question. Kenya has very strong AML legislation (POCAMLA) that all CBK regulated banks abide by. To your question Calvince, international banks, including Citi, also have stringent regulations to abide by. We have been successful to automate screening of transactions for both AML and CFT (countering the financing of terrorism) before transactions are completed. Kenya also has the Financial Reporting Center (FRC) that has oversight on AML CFT transactions, in addition to the Central Bank.
Harry Fanjo
Good morning Mr. Mugambi. This is great. I am glad to know that banks are stepping up cyber security measures. On real time customer issue resolution from these mobile platforms, how prepared are our call centers? These can be annoying and very slow due to long chains of admin rights and approvals. Please comment on this. Thank you.
Stephanie Wuu
Hi Mr. Martin, Since now most banks are using online, does your bank allow set up a new acoount the same way too? What is the proess for a non-citizen of your nations to set up via online in your system?
Kelvin Kuria
Hello Sir,
George Njoroge
Good morning Sir,
Martin Mugambi
Mary thank you I think I have addressed the issue of AML CFT both domestically and in the international payments space. Indeed, we need to balance access with system security and that is why each bank has to continuously upgrade their AML protections.
Moses Njenga
Good morning mr. Mugambi
Calvince Amallah
Mr Martin, thank you for the AML and CFT answer.
George Njoroge
My main concerns is that with the continued adoption of new technology, cyber fraud are becoming more and more rampant. How are banks prepared to improve their speed in dealing with customer complaints?
Kelvin Kuria
Recently on Twitter I saw that Safaricom (Mpesa) is planning to introduce a credit card after partnering with Visa .Now considering that it has a subscriber base of 30M+ subscriber, what would happen to our banks if this plan went through
Martin Mugambi
Hi Eric, fantastic question! The pandemic will change banking in material ways forever. Banking will not be a physical construct and financial services will not only be provided by banks. The customization of financial services will become the norm. "Show me that you know me" will be the new mantra. Tailored financial solutions, frictionless payments, online marketplaces, and digital service centers are some of the innovations that will be the new norm for banking. Kenya is already well on this course as we have seen Fintechs and MNOs in this market develop some interesting propositions.
Martin Mugambi
Hi Winnie and Roselyne, I see your questions about the customer experience theme.
Martin Mugambi
The most important thing banks are doing right now is to ensure that customer survive this pandemic. For instance, restructuring of loans for personal and corporate customers, providing working capital for SMEs, waiving of bank charges to facilitate mobile payment transactions. All bank to bank PesaLink transaction fees have been waived. Customers also have a variety of digital payment options to mitigate the use of cash or visits to banking halls. So customer experience is really about making life convenient for the user during this pandemic.
Calvince Amallah
Question: Looking at the Kenyan banking industry, most banks do not even have Data Analytics departments, leave alone a well developed one. Isn't this something to worry about especially when it comes to digitalization?
Martin Mugambi
Collins, PSD2 or payment services directive 2 in the EU is really about data protection; Kenya has passed a data protection bill that will greatly accelerate open banking by ensuring privacy and leveraging of data. A secure data environment fosters innovation and helps lower the cost of services.
Martin Mugambi
Welcome Jacob, unregulated digital lenders is an important topic.
Stephanie Wuu
Hi Mr. Martin, Sorry that my question may not have related to your topic today, as I would like to either set up another time or just exchange email with you for my questions related funding verify earlier. If it is okay with you, please let me know how to contact you. Here in USA is 346am so I am leaving shortly. Greatly appreciated your assistance. My contact is oboegalaxymanagementllc@gmail.com (I am also USA Government Marketing consultant so I am very interested in learning banking system in your country.
Stephanie Wuu
Sorry guys if my topic is out of line here.
Martin Mugambi
The Central Bank of Kenya has proposed to include regulation of credit-only digital lenders in the Banking Act. This will mean that digital lenders will have to abide by the Banking Charter which calls for transparency, customer centricity, and risk-based lending. Once this regulations are in place, digital lending will be transformed but it will also protect the customer without harming innovation.
Jamal Khan
Question: Would Citibank in Kenya consider enhancing financial services through Personal banking - or is its strategy to remain in corporate banking?
Martin Mugambi
Theresa, thank you for your question. Financial literacy is a key driver of innovation. The level of trust has to be there for financial adoption of digital transactions to accelerate. Driving greater financial inclusion is not only a way of lifting people out of poverty, it also brings people into the formal sector where they can access a variety of financial services to empower them.
Martin Mugambi
Oscar you raise a fantastic question about the lessons ive learned in this time of COVID
Martin Mugambi
Lesson 1...Remote working is going to be the new norm.
Martin Mugambi
Lesson 2...the digital economy has really started now, if you are not ready, you will be left behind.
Martin Mugambi
Lesson 3...the most important asset banks have is their people, trust, and ability to be relevant. COVID has taught us to go back to the basics and focus on what is really important.
Calvince Amallah
Hi Stephanie, kindly email me at calvinceamallah@gmail.com. We'll share if I can help on your topic: The Banking system in Kenya.
Martin Mugambi
The final lesson...empathetic leadership is what will distinguish those who will survive and thrive versus those who will not make it into the fourth industrial revolution.
Stephanie Wuu
Thanks Calvince
Stephanie Wuu
Mr. Martin, how can I contact you? Thanks.
Habil Olaka
Thanks, Martin.
Roger Biribonwa
Thanks Martin.
Habil Olaka
Great conversation there. Good insights on very topical issues in the current environment.
Martin Mugambi
Hi David, digital currencies are already here! when you use digital credit on your mobile phone you are already using a digital or virtual currency. The key underlying factor is the trust you place on the actual currency you are using. Digital currencies will be the oil that fuel the e-commerce platforms that are emerging.
Calvince Amallah
Hi Martin. Thanks for the insights. Kindly let me know how I can contact you. I need to learn more from you. My email address is calvinceamallah@gmail.com.
Martin Mugambi
Yvonne, spot on!
Stephanie Wuu
Thanks everyone and it gives me new insight of your nation in banking
Stephanie Wuu
Hi Mr. Martin, just as I mentioned that I am here today for professionally and personally directly to you. Let me know how can I contact you. Thanks again.
maina NJUGUNA
Thank you Martin Mugambi for this insightful session.
Jane Atuta
Can the central Bank and small banks in Kenya consider taking the virtual option? Like just a single head office and a strong digital platform to cater for clients
Martin Mugambi
Johnson from time to time we do offer internships through universities, for example, SU and UON. So if you are in either you can check with the career placement services or professional student bodies (such as accounting, finance, marketing) for the recruitment schedule.
Stephanie Wuu
It is my pleasure to have joined your discussion. Maybe I will come back for another run. Is it okay for me to leave my Linkedin to connect with everyone here if interested in? During COVID-19, we all need to reach out more to one another no matter which nations.
Martin Mugambi
Kelvin i see your question about competition between banks and MNOs, this is inevitable and really speaks to innovation around virtual cards as a channel extension of mobile money. Banks will continue innovating to be relevant to their customers. Virtual cards are going to increase in scope and use as we digitize and de-cash.
Oscar Magu
Thank you Martin for the wonderful response. Indeed they are great lessons learnt.
Joseph Mburu
truly
Joseph Mburu
iam happy to be here
Martin Mugambi
Jamal, the Citi strategy in Kenya focuses on corporate banking. But we are rapidly transforming through smart partnerships, leveraging digital strengths to serve a wider ecosystem of customers.
Betty Kimathi
Very engaging discussion on our current unprecedented environment
Martin Mugambi
Hello Habil and thank you for joining...this is a good way to close the conversation. Habil is the KBA Chief Executive and I would like to thank him, Nuru Mugambi, and the KBA A-team for organizing this fantastic forum.
Wandiri Gitogo
Very insightful discussion, thank you Mr Martin
Martin Mugambi
Thank you to the participants in this fantastic chat...you have all been great! And I have enjoyed this insightful and engaging discussion. Keep safe and God bless you all.
David Indeje
Asante sana, for your candid responses and feedback
Calvince Amallah
Thanks Martin, Habil and Team, and fellow participants.
Chat Admin
Thank you everyone for participating and for your insightful questions and contributions
Betty Kimathi
Thankyou
Yvonne Wanjiru
Thankyou sir.
Emmanuel Aloo
Hi there sir, do you think that the banking sector is doing enough in terms of innovation to live up to the standards set by telecommunication companies such as Safaricom in terms of financial inclusivity and making sure everyone has an account like Mpesa to bring down the cost of accessing credit facilities?
Chat Admin
We are now out of time as we were wrapping up at 11am. But remember to join us for a chat next Friday same time. The topic will be on Supporting SMEs Affected by the COVID-19 Disruption and our host will be Mr. Jeremy Awori, ABSA Bank, CEO
Martin Mugambi
Thank you Wandiri
Chat Admin
Incase you joined late do not worry, you will be able to find a transcript of this session on the website even after we close the chatroom
Martin Mugambi
Thank you Stephanie
Martin Mugambi
Thank you all and have a good weekend.
Stephanie Wuu
Hi Martin and I await for your contact.